Discounted Cash Flow (DCF) Analysis Levered

Kellogg Company (K)

$67.175

-0.82 (-1.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 89.15 | 67.175 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 12,85413,54713,57813,959.5514,351.8314,755.1215,169.7515,596.0316,034.2916,484.8716,948.11
Revenue (%)
Operating Cash Flow 1,6461,5361,1761,526.461,569.361,613.461,658.801,705.411,753.341,802.611,853.26
Operating Cash Flow (%)
Capital Expenditure -501-578-586-580.72-597.04-613.82-631.06-648.80-667.03-685.77-705.04
Capital Expenditure (%)
Free Cash Flow 1,145958590945.74972.32999.641,027.731,056.611,086.311,116.831,148.22

Weighted Average Cost Of Capital

Share price $ 67.175
Beta 0.424
Diluted Shares Outstanding 343.65
Cost of Debt
Tax Rate 24.31
After-tax Cost of Debt 2.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.643
Total Debt 7,729
Total Equity 23,084.62
Total Capital 30,813.62
Debt Weighting 25.08
Equity Weighting 74.92
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 12,85413,54713,57813,959.5514,351.8314,755.1215,169.7515,596.0316,034.2916,484.8716,948.11
Operating Cash Flow 1,6461,5361,1761,526.461,569.361,613.461,658.801,705.411,753.341,802.611,853.26
Capital Expenditure -501-578-586-580.72-597.04-613.82-631.06-648.80-667.03-685.77-705.04
Free Cash Flow 1,145958590945.74972.32999.641,027.731,056.611,086.311,116.831,148.22
WACC
PV LFCF 990.95972.32954.04936.10918.50901.24884.29867.67
SUM PV LFCF 4,723.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.78
Free cash flow (t + 1) 1,171.18
Terminal Value 42,128.78
Present Value of Terminal Value 33,357

Intrinsic Value

Enterprise Value 38,080.27
Net Debt 7,443
Equity Value 30,637.27
Shares Outstanding 343.65
Equity Value Per Share 89.15